Final answer:
Speculative construction is when homes are built for potential customers without a pre-existing contract, and saw a rise during the housing bubble due to accessible loans.
Step-by-step explanation:
The type of construction in which homes are built for potential customers without a specific buyer beforehand is known as speculative construction. This approach contrasts with custom construction, where homes are built according to a specific client's design, and tract construction, which involves building a large number of similar homes on a tract of land. During the peak of the housing bubble, due to easy access to credit, speculative construction saw a significant increase as many people were able to secure loans for new home construction.